Chairperson Lee Eog-weon of the Financial Services Commission announced a plan to make a new turning point in nurturing advanced industries by actively investing, through the Public Growth Fund that is shifting the flow of Korea's economy toward the future and innovation, in technologies that require a long time.
At the "ultra-long-term technology investment fund public hearing" held on the 20th at the Korea Development Bank (KDB) IR Center in Yeouido, Seoul, the Chairperson explained the purpose of introducing the ultra-long-term technology investment fund in this way. On the same day, the Financial Services Commission (FSC) presented a plan for fund operations and collected expert suggestions through a public hearing ahead of the launch of the ultra-long-term technology investment fund with investment firms and industry, among others.
The ultra-long-term technology investment fund is one of the elements that differentiates the Public Growth Fund from existing policy funds. To actively support advanced technology fields that require long-term patient investment, the fund's life has been greatly extended to up to 15 years, and it is structured as an indirect investment fund (for institutional investors) that significantly lowers the burden of raising private capital.
In opening remarks, Chairperson Lee Eog-weon said, "The Public Growth Fund, as an investment platform leading advanced industries, is shifting the flow of our economy toward the future and innovation," adding, "Through the Public Growth Fund's financial support, projects that were difficult to pursue due to a lack of funds and high risks are gaining speed, and it is breathing new vitality into areas such as AI semiconductors, new drug development, and defense exports," evaluating the achievements so far.
He went on, "The global investment war is intensifying, and in this process, securing foundational technologies that will change the future and internalizing core technologies of key industries are essential tasks," adding, "The Public Growth Fund also needs to go beyond its achievements so far and actively invest in technologies that require a long time," explaining the purpose of the introduction.
The ultra-long-term technology investment fund, which will be created this year at a scale of 880 billion won, will have more than three-quarters of the total resources—680 billion won—borne by the advanced strategic industry fund (600 billion won) and the fiscal budget (80 billion won), greatly reducing management companies' burdens of raising and forming private capital. In return, the fund's life is imposed at a lengthy 15 years, and the actual investment period is also presented as long as up to seven years, designed to enable long-term and continuous investment in technology and corporations.
The Chairperson said, "The ultra-long-term technology investment fund must be a fund that grows together with corporations, and to that end, we will consider a method that gives favorable evaluations when investing additionally alongside corporations and imposes disadvantages when exiting early in a way that does not align with the fund's purpose," adding, "Whether the firm has excellent management talent and whether it introduces a practical and sufficient compensation system for them will also be reflected when selecting managers."
The Chairperson said, "With the launch of the ultra-long-term technology investment fund, management companies that understand technology well will identify good technologies and stay alongside them until those technologies become industry results," adding, "We will also actively support the emergence of specialized managers (KSTP) with an investment philosophy focused on foundational or core technologies for the future."